I have a 2004 RX8 that I love. It has around 120,000 miles on it, looks amazing but the engine is toast. Was told the compression numbers were around 4. It's at the Mazda dealership They are wanting about 7500 to put a new motor in. I asked what it was worth if I traded it in and they have offered me $500 cash for the car & "maybe" could get a couple hundred more if I wanted to trade it in on another Mazda. I'm still trying to comprehend all this in my head. Any suggestions on what I should do?

 

Wow. Dealership's always try to burn people. 7500 seems like A LOT for a rebuild. I thought rebuilds at the dealership was like 5k??

If you're up for it, try to find a small shop that deals with Rotaries, RX'8s, RX-7s etc... They usually do a better job from what I hear anyway

 

There are several good shops in Georgia. Several are vendors here. Scan the vendor area.

And, I would skip that dealer.

For reference, for that price, here in Florida, I got a blue-printed ported motor, a radiator, a clutch and a few other things. All installed. I just dropped the car off. This was down at Pettit, in West Palm, but there are good shops up your way as well. And, my engine started life as a new Mazda Re-Man (mine was too far gone to rebuild) in the crate.

 

Was also quoted roughly 7500 for an engine rebuild here in California :\ Didn't ask the trade in value though

 

Early (2004-5) automatics' engines are supposed to be more expensive. Perhaps it's that?

Contact an engine builder like pineapple racing, pettit racing, rotary resurrection, etc. Could get a better price.

 

I think you have 2 options
1) get rid of the car. Should be able to get $2-3k for it non-running
2) keep the car, have a shop put in a new engine.

If you decide option 2: I highly recommend Rotary Resurrection. I believe he is the most cost-competitive and does fantastic work.